Corporate Commercial Project Review Procedure

Purpose: To provide a system for a review of projects by impartial, independent and experienced personnel to ensure that required performance standards are being met and to assist and advise the related parties as appropriate.

Scope: This procedure is applicable for all construction projects of a company. The scope shall include, but not be limited to, the following:

This procedure applies to all projects undertaken by company and can be applied to development as well as construction projects (i.e. pre and post award).

Definitions and Abbreviations

Action Statement: A summary of the required “actions‟ resulting from a Corporate Review allocated on a “by who” “by when” basis.

Initiating Manager: A Board member who requests that a Corporate Review be carried out.

Corporate Review: The process of undertaking an independent review of project systems, procedures and practices.

MSLs: Management System Leaders represented by Business Systems Manager at the corporate level.

Project Information: The minimum information to be provided to the Corporate Review Team (“Review Team”) prior to the review being undertaken as detailed herein.

Responsibilities

The following personnel have responsibilities mentioned in this procedure:

– Corporate Commercial Directors (CCD)

– Initiating Manager

– Project Director (PD)

– Review team

Commercial Project Review Procedure

Initial Corporate Review (following on from Project Launch)

a) The CCDs, in conjunction with the Board and MSLs shall ensure that a schedule of project reviews is drawn up for each 6 monthly periods and agreed with the Board.

b) CCDs will ensure the members of the Review Team are independent of the functions being review

c) All new projects will undergo an initial Corporate Review, nominally not later than 20% (twenty percent) through their anticipated contract duration.

d) Such reviews shall be undertaken automatically with the Board as the nominal initiating manager.

e) The following ‘Project Information’ shall be provided by the PD at least five (5) working days prior to the agreed date for the review:

‘Status’ copies of the minutes from the Tender Handover Meeting and the Project Delivery Meeting for the project;

Project Organization chart;

Copy of the contract program and the current ‘status’ program;

Copy of all Project Monthly Reports issued to date including the current Financial Forecast;

A brief description of the project explaining what we are required to do under the contract;

A copy of the contract including the general specification and scope of works;

A summary of the risks and opportunities identified at time of tender and a summary of the current risks and opportunities, together with the status of any Action Plans; and

Any other information pertinent to the review process or requested by the Review Team.

Corporate Review Procedure(Other)

a) A Corporate Review may be undertaken at any time at the request of the Initiating Manager.

b) Following such request, the PD shall provide the following ‘Project Information’ at least ten (10) working days prior to the date for review:

i. Project Organization Chart;

ii. Copy of the Contract program and the current ‘status’ program;

iii. Copy of the last three (3) Project Monthly Reports including the current Financial Forecast;

iv. Brief description of the project and what we are required to do under the contract;

v. Copy of the contract including general specification and scope of works;

vi. Summary of the risks and opportunities identified at time of tender and a summary of the current risks and opportunities, together with the status of any Action Plans;

vii. Copy of the project file index; and

viii. Any other information pertinent to the review process or requested by the Review Team.

Necessary Resources for Project Review

a) Corporate project review will be carried out by Review Team using experienced personnel, with appropriate skills sets as determined by the CCDs.

b) The Review Team shall nominate the Review Manager who shall be responsible for managing the review and producing the “Corporate Review Report‟.

Checklists and assessment tools

a) A number of checklists and assessment tools have been develop These may be utilized as part of the Corporate Review process and include:

Corporate Commercial Review – General Checklist – relating primarily to the establishment of basic project control procedures and practices;

Corporate Commercial Review – Financial Forecast Template – used to facilitate a detailed review and reconciliation of the Cost Report and Margin Forecast;

Corporate Commercial Review – Planning Systems Questionnaire – used to assess the extent of planning and program controls on the project. Can also be utilized as a self-assessment tool by the project team; and

Project Commercial Review Reporting

b) This report will be provided within ten (10) working days of the completion of the review unless a more urgent response is deemed necessary by the Review Team and/or the Initiating Manager.

c) The report shall be provided to the Initiating Manager and copied to the Board, the Project Director and the CCD’s. Subsequent distribution of the report (or any part thereof) shall be at the discretion of the above noted recipient.

d) The report shall include an „Action Statement‟ (refer Corporate Commercial Review – Report Format) which shall summarize and facilitate “follow up‟ of all actions required as a result of the review.

Project Review Follow up actions

a) Actions relating to the Project shall be allocated in consultation with the Initiating Manager /Project Director.

b) Actions arising from the Corporate Commercial Review shall be monitored and updated as part of the Project Review Process.

c) The relevant Board Member (or nominee) shall ensure that all actions are allocated and completed within the required time frames.

d) Feedback shall be provided in relation to the enhancement or amendment of existing procedures and systems to the MSLs as a result of matters arising from the Corporate Review Process.

e) Copies of completed Action Statements shall be forwarded by the relevant Initiating Manager (or nominee) to the Board, the Project Director and the CCDs.